If the price is right, a house will sell

[espadrille 10]

I'm looking at a property and have put a couple of offers in and got rejected each time. however im struggling as I don't really know what I am doing (first time buyer y'see). Im thinking my next offer will be 90% of the asking price which is the max i think the property is worth. I think this offer will be rejected too and don't want to go higher although really like it. Should I wait for the vendor to realise noone else is gonna buy it therefore dropping their price or should I just go for it? Its very hard to figure how much a property is actually worth!

 

Its worth what you are willing to pay and if no one else wants it then they should let you have it.test it and see?

[Cyclone 10]

at last, I`ve been lurking till someone posted this fact.

 

 

yes I`ve got my house for sale and yes it`s been 6 months and yes I`ve dropped the price 5% (because I don`t go in for cheap gimmicks like the other poster) BUT I`m not going to give my house away either.

 

If you wanna buy a nice 4 bed in a nice area then your going to have to pay the price of nice four beds in a nice area not the price you WANT to pay for one ......

 

And if you can`t afford it ? well, do I really want you for a neighbour?

 

Looks like you're staying put then.

[L00b 441]

I'm looking at a property and have put a couple of offers in and got rejected each time. however im struggling as I don't really know what I am doing (first time buyer y'see). Im thinking my next offer will be 90% of the asking price which is the max i think the property is worth. I think this offer will be rejected too and don't want to go higher although really like it. Should I wait for the vendor to realise noone else is gonna buy it therefore dropping their price or should I just go for it? Its very hard to figure how much a property is actually worth!

 

#1 - Figure out your max for any given property (i.e. the 90% for the property you're currently after. Doesn't have to be 'right' or 'wrong' relative to the market, it justs has to be 'right' with you, i.e. you can live with what you paid for the house, even if its value keeps going down awhile after you bought it. After all, house value only matters if you buy or sell, not once you live in it)

 

#2 - Put your offer in below your max

 

#3 - Be and stay emotionally detached after

 

#4 - Don't go over your max, keep looking places up in the meantime

 

#3 is the hardest, especially if you're into a bidding war with another potential buyer, e.g. you call it quits at £100k and have to live with the fact that they may have "got it" over you at £101k.

 

My £0,02? Estate agents have been doing sweet FA in business terms for ages, they'll be after big commissions to shore up cashflow from higher-value sales, and so perpetuate the artifical high valuations and probably prop the vendors to keep the prices up (based on ages-old 'market price' + padding valuation, whereby vendors would still get at least what is perceived as 'market price after padding is dented by negotiations, but vendors understand 'market price' + padding as the actual market valuation = problem).

 

Stick to your max, and leave the vendors to their delusions (and bask when they eventually come back cap in hand, at which time you drop your earlier offer of course - assuming you're still looking by that time).

[Tomataheeed 10]

#1 - Figure out your max for any given property (i.e. the 90% for the property you're currently after. Doesn't have to be 'right' or 'wrong' relative to the market, it justs has to be 'right' with you, i.e. you can live with what you paid for the house, even if its value keeps going down awhile after you bought it. After all, house value only matters if you buy or sell, not once you live in it)

 

#2 - Put your offer in below your max

 

#3 - Be and stay emotionally detached after

 

#4 - Don't go over your max, keep looking places up in the meantime

 

#3 is the hardest, especially if you're into a bidding war with another potential buyer, e.g. you call it quits at £100k and have to live with the fact that they may have "got it" over you at £101k.

 

My £0,02? Estate agents have been doing sweet FA in business terms for ages, they'll be after big commissions to shore up cashflow from higher-value sales, and so perpetuate the artifical high valuations and probably prop the vendors to keep the prices up (based on ages-old 'market price' + padding valuation, whereby vendors would still get at least what is perceived as 'market price after padding is dented by negotiations, but vendors understand 'market price' + padding as the actual market valuation = problem).

 

Stick to your max, and leave the vendors to their delusions (and bask when they eventually come back cap in hand, at which time you drop your earlier offer of course - assuming you're still looking by that time).

 

 

got to say you are wrng on the EA bit - agents don't care if a house sells for £200k or £220...they need volumes of house sales which is whats killing their busines currently. They are much more likely to advice a seller to get rid cheap.

[L00b 441]

got to say you are wrng on the EA bit - agents don't care if a house sells for £200k or £220...they need volumes of house sales which is whats killing their busines currently. They are much more likely to advice a seller to get rid cheap.

 

Maybe 'round your neck of the woods, but that's not been my experience so far (you'd expect them to roll out a red carpet for the few buyers ready to press the 'go' button at a moment's notice these days (i.e. not in a chain, with bank approval, and a very substantial deposit), yet we've had to call a few of them repeatedly to get updates on offers made days ago).

 

I don't have a crystal ball (and am not an EA), but the offers haven't been particularly low-balled, so putting 2+2 together ain't that difficult

 

(they are very unlikely to achieve any volume in the short to medium term anyway, and they know it)

[Munch 10]

#1 - Figure out your max for any given property (i.e. the 90% for the property you're currently after. Doesn't have to be 'right' or 'wrong' relative to the market, it justs has to be 'right' with you, i.e. you can live with what you paid for the house, even if its value keeps going down awhile after you bought it. After all, house value only matters if you buy or sell, not once you live in it)

 

#2 - Put your offer in below your max

 

#3 - Be and stay emotionally detached after

 

#4 - Don't go over your max, keep looking places up in the meantime

 

#3 is the hardest, especially if you're into a bidding war with another potential buyer, e.g. you call it quits at £100k and have to live with the fact that they may have "got it" over you at £101k.

 

My £0,02? Estate agents have been doing sweet FA in business terms for ages, they'll be after big commissions to shore up cashflow from higher-value sales, and so perpetuate the artifical high valuations and probably prop the vendors to keep the prices up (based on ages-old 'market price' + padding valuation, whereby vendors would still get at least what is perceived as 'market price after padding is dented by negotiations, but vendors understand 'market price' + padding as the actual market valuation = problem).

 

Stick to your max, and leave the vendors to their delusions (and bask when they eventually come back cap in hand, at which time you drop your earlier offer of course - assuming you're still looking by that time).

 

Thanks very much for your advice loob! We do like the property (im sure theres more suitable ones in the area (Walkley), but which ain't being sold) but are gonna drag the process out as long as possible for obvious reasons.

The funny thing is, I get the impression that the estate agents arn't particularly arsed. I thought they'd be phoning us up every 5 minutes!

No, we won't go over our Max. The sellers will have to come down and meet it, and if they are unprepared to do that then they may have to wait a long while for a sale. Anyway, I should'nt say too much more..

[Little Buzz 10]

One of the main reasons houses are not selling is because people can't get mortgages. Companies won't lend to people who don't have significant deposits and because this is most people there aren't many buyers - and therefore houses aren't selling. Reducing the price will help you to sell but it doesn't sound like it is that simple - no mortgage agreement no buyer basically.

 

Spot on - there is limited supply of funds on the global markets for mortgage lenders to borrow from to lend to buyers.

 

There are still people out there that want to buy, but fewer people can get a mortgage as lenders are now being more stringent in their requirements.

 

HBOS only lent £140 million in August compared to £7 billion the previous August - not just because people don't want to buy houses, but also because they can't get mortgages.

[saxondale 10]

Looks like you're staying put then.

 

not really, got another viewer coming this week, this is the 4th viewer in the last 3 weeks and out of these 3 -

 

1 stupid offer, really 120k for a new 4bed in an area you yourself want to live, I actually told them to stop reading forum wish lists and to grow up.

 

1 person decided they wanted a consv. more than the larger garden so bought the same house round the corner for 5k more.

 

1 person was looking to part exchange because they had heard how bad the property market was and couldnt face the hassle.

 

 

out of the 6 or 7 viewers ALL have been "genuine viewers" rather than the usual time wasters we`ve always had previously, all have reasons not to buy ours just the same as we`ve had reasons not to buy the houses we viewed, but non of them have said "it`s over valued ........... not worth the money .... or we can`t raise the funds"

 

The house will sell, just the same as the others mentioned on this thread, and no I wont need to "knock " 40k off the price to do it.

[saxondale 10]

but also because they can't get mortgages.

 

 

clear up another misconception here

 

you tried to get a morgage recently ? I have and had them falling over themselves to lend

 

yes the rates were higher than last year so there`s an affordability issue but the "unaffordability" is my problem not down to the fact the banks arn`t lending

 

far too much talking about in these threads and not enough actual experiance IMO

[Little Buzz 10]

clear up another misconception here

 

you tried to get a morgage recently ? I have and had them falling over themselves to lend

 

yes the rates were higher than last year so there`s an affordability issue but the "unaffordability" is my problem not down to the fact the banks arn`t lending

 

far too much talking about in these threads and not enough actual experiance IMO

 

I didn't say they wouldn't lend.

 

I said they are more reluctant to, as evidenced by them wanting bigger deposits.

 

The requirement for a bigger deposit and the fact that some lenders have reduced their income multiples reduces the pool of potential buyers.

[saxondale 10]

I didn't say they wouldn't lend.

 

I said they are more reluctant to, as evidenced by them wanting bigger deposits.

 

The requirement for a bigger deposit and the fact that some lenders have reduced their income multiples reduces the pool of potential buyers.

 

 

same argument, no more no less "willing " to lend then

 

 

 

the issue is you* can`t afford to finance the purchase. So why on earth should I keep reducing the price till YOU can?

 

* not meaning you yourself

[Little Buzz 10]

same argument, no more no less "willing " to lend then

 

the issue is you* can`t afford to finance the purchase. So why on earth should I keep reducing the price till YOU can?

 

* not meaning you yourself

 

They are. The global funds they had access to are not there in the same volume any more - that was the problem Halifax had - it borrowed money to lend out, but no longer had access to it.

 

So building societies who would lend to people who were less than a A pass on the credit score, or would lend a high multiple of earnings now won't do that. They will only lend to those who are the lowest risk - those with excellent credit scores who have the biggest deposits.

 

All of this means there are fewer people in a position to buy your house than there were 6 months ago.

 

As there is less demand, the price should fall - it's simple economics.

 

Whether it does or not is up to you - you don't have to sell it at a lower price, and no-one has to buy it either - and I didn't suggest you did.